Posted February 20, 2009 2:49 am by with 8 comments

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By Jim Tobin

A couple of weeks, ago, Geoff Livingston wrote a post called “What Will You Do When Social Media Isn’t Special Anymore?” While I agree with part of his premise (that social media won’t remain the shiny new object forever), the other part (that traditional agencies will soak up the social media work) is simply wrong. Here’s why:

Historically, specialists stick around

Geoff argues that once the PR, advertising and interactive agencies figure this all out, they’ll take the work back. This should be true, but it never is.

  • 1996: “Once advertising agencies figure out HTML, they’ll do all the web development. These interactive agencies will be absorbed.” Should’ve been true. Wasn’t.
  • 2000: “Once the interactive agencies figure out the tricks of SEO, specialists in search engine optimization will go away.” Again, didn’t happen.
  • Today: “Once the PR people, or the ad people, or the digital people, or maybe the SEO people, figure out this social stuff…”  Not going to happen.

In fact, it never happens.

Big brands that are already utilizing social media agencies include Ford, Microsoft, Intel, SAP, Citibank, Coke.  The list goes on. These folks have access to all types of large, talented agencies, but they see a need for specialists—for some of what they do.

Divergence is the most powerful force in the universe

In their outstanding 2004 book, “The Origin of Brands,” Ries and Ries demonstrate how the world gets infinitely more complicated and products, and specialties continue to branch out. The telephone splits into landlines and cell phones. Landlines split into traditional and VOIP. Cell phones split into texting phones, smart phones, flip phones.

And on and on.

What’s really next for social media agencies

Certainly it’s early for all of us, but more likely than being threatened from “above” by traditional agencies, the history of divergence tells us that over time we’ll be threatened from “below”.  Specialists in one subset of social media will emerge (they already are), and we’ll find ourselves competing with them in a couple years.

That’s how it works in advertising. That’s how it works in PR. That’s how it works in interactive. That’s how it works in SEO. Because that’s how it works.

Will traditional agencies “do” social media?

Of course they will. Just like ad agencies build websites. And interactive firms build SEO into what they do.

And some clients will prefer that model. The “Can you just handle all this for me?” model. Nothing wrong with that at all.

Just don’t expect the genie to go back in the bottle, with social media agencies disappearing. History just isn’t on the side of that argument.

About Jim Tobin

Jim Tobin is president of Ignite Social Media and author of the book Social Media is a Cocktail Party: Why You Already Know the Rules of Social Media Marketing.

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  • Mark

    I do agree with that. How do they handle bounce rates. I can see that increase in bounce rate is a disadvantage of Social media marketing.

    Mark’s last blog post..Canonical Meta Tag Released

  • Ian Garlic

    Not only do I wholeheartedly agree, but I think it is glaringly obvious if you spend fifteen minutes browsing all of the social networking apps, infact just the Twitter apps. How can one traditional advertising company be everything to every one? How can you truly get to know television metrics AND a brand AND the nuances of a swarming social network AND not break something? Yes some aspects will be absorbed into every media company but
    in days of internet noise, specialization and flexibility become two very important attributes that prevent the thriving of a “one stop shop”.

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  • Eric Pender

    I completely agree that the threat will likely come from the bottom, not from the top.

    Years ago, traditional agencies realized that the web was going to be big, but by the time they invested significant resources into web development, smaller web dev agencies had already built out their expertise and were light years ahead of the traditional shops. As you mention above, the same thing happened with interactive firms and SEO.

    Sure, the interactive shops will say they do SEO and PPC and social media. But it’s the difference between a hammer and a Swiss army knife. Specialists will be the hammer, doing what they do and doing it very well. The generalists will be the Swiss army knife, saying they do it all, but in reality they do it all with very average results.

    Eric Pender’s last blog post..Redirect 301 /eric.html

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